"Exciting and nerve-racking!" exclaims first time auction buyer Arwinder Singh from Barry, who bought the former Central Hotel in Tonypandy for £65,000 at the latest Paul Fosh Auctions property auction in Cardiff.

So if you're tempted as Arwinder was, here is what it's like to buy a property at auction.

1. Research and read

Read everything before you even attend (Image: Media Wales)

There is work to do before you even attend the auction, such as reading the catalogue, viewing potential properties, getting a survey done, reading the legal pack and researching the location and getting your finance in order - you will need to pay usually a 10% deposit at the time of the auction plus possibly some fees.

Information such as only cheques, bankers drafts or cash are acceptable forms of payment is imperative to know, so read all the auction house instructions on their website prior to the day.

2. Get yourself registered

The first thing yo must do is register

When you arrive, there is a room to the side of the main auction where you must register. You will need proof of address such as a utility bill and proof of identity, such as a passport.

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6. Listen to auctioneer instructions

Before the auction starts, the auctioneer will announce any changes to the catalogue, withdrawals and legal information so it's important to attend the auction from the start.

7. Observe

You've just bid on a 3 bed semi by scratching your head (Image: Media Wales)

See how other potential buyers bid; many hang back until the auctioneer says going once to then place their first bid.

Another method that many experienced bidders use to slow the bidding down is by offering just a £500 step increase in the price, referred to by the auctioneer as 'a half'.

8. Don't get over-excited

The bidding is fast and furious (Image: Media Wales)

It's easy to get carried away in the bidding process, it can get very competitive.

It can also be over very quickly and suddenly you've bought a property for way over your budget or one that you didn't even come to buy!

Most experienced auction buyers will have a list of possible properties to bid on in case their preferred option goes over their budget limit. And they will have done their property 'research and read' homework on all of them.

9. Reserve negotiations

The 'runners' have a pre-action briefing

If the property you are bidding on does not meet the seller's reserve price, there may be a chance to negotiate a price after the action with the auction house who represent the seller and their wishes in this scenario.

If this is the case on the lot that you want to buy, then the auctioneers will offer this option at the time the bidding ends.

10. It's yours

If you are the final bidder when the hammer goes down, it's legally your property. There's no argument, the hammer fall is legally binding. Gulp.

11. Now the office bit

Arwinder signs the initial paperwork for his new purchase in Tonypandy

A member of staff called a 'runner' will complete an initial form for you to sign as the new property owner, before escorting you to an office to complete the legal paperwork and immediately expect a 10% deposit payment and any fees. Most buyers use a cheque book.

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12. Wonder what you've bought

John Heaney from Bath enjoyed buying at auction for the first time

The Heaney family from Bath made the journey over the bridge to find an investment property in South Wales.

After buying a property in the Valleys, Diane Heaney asks "Actually, where is Abertillery?", but luckily husband and son Simon had spent a day last month visiting all the properties they were interested in bidding on.

Very wise first time bidders.

13. Pay the balance

Most property auctions demand the remaining balance on the purchase within 28 days. If it's less, then this is stated in the legal pack.

Until you have paid the balance and the sale has completed, you can't have the property keys, although they can be released to your solicitor or surveyor if you need to view the property (hopefully not for the first time!) before the sale is complete.

14. Make it yours

Then the new purchase is yours - to renovate, live in, sell or rent.

15. Maybe go again?

And if you're bitten by the property auction bug and have the budget available, could this be the start of your property empire?